Spanish Mortgage

This is a message to the U.S. Federal Reserve banks, the latter demanded that the debt repayment on term loans that many seen as a harbinger of rising interest rates. Meanwhile, from the U.S. Federal Reserve were quick to say that this applies only to short-term loans, but it becomes apparent that the level of banking Liquidity is no longer viewed as a crisis. "Long live the cheapest mortgages for property in Spain!" Specialists eurodomik.ru clarify that when obtaining a loan to a Spanish bank to purchase real estate interest rate formed from a European interest rate EURIBOR and the actual income of the bank. Stabilization of the EURIBOR index trigger is that everyone who will review their mortgages according to the March data, or see their rates decrease on the loan, or will remain virtually the same interest rates. It all depends on the period over which a mortgage agreement is being revised.

Thus, the more profitable will annually review the conditions and in most long-term lending (such as mortgages for 40 years). Thus, due to the fact that the EURIBOR in March 2009 stood at 1.91%, those who annually review credit terms, would save 7% if their mortgage was framed in the last year for 25 years, and 11% – if in 40 years. However, these two examples reduce the payment is still significantly lower than those for mortgage contracts that were signed many months ago – for those borrowers savings would amount to more than 30%. On the other hand, those who review your credit agreement every six months, reducing the payment on the loan is almost invisible, because Six months ago (September 2009) EURIBOR index was only on level of 1.26%, that is, savings would amount to about 1% – as well as for those who signed mortgage agreement last year for 25 years, and for those who do it for 40 years. In both cases, the discount on the mortgage is almost imperceptible, but even this pleasant change, since These discounts are stored for several months. Source: Property in Spain